Opportunities to expand export markets
In 2016, the signing of a series of free trade agreements (FTAs) will attract many new investors to Vietnam. These FTAs will generate significant export growth in 2016 and the coming years. At the same time, the reduction of tariff barriers will facilitate Vietnamese export to major markets. This will also create favorable conditions for enterprises to expand export markets. Particularly, when the TPP officially takes effect, textile industry will have more opportunities to expand the US market, as textiles export tax rate will be 0%.
Nguyen Van Luong - Deputy CEO of Vietnam Esquel Garment Manufacturing Company (Thuan An town) said, the company exported their products to over 40 countries worldwide. In 2016, Vietnam will have a chance for deeper integration into international markets. Based on FTAs signed by Vietnam, they have high expectations of the number of orders and customers, especially new customers.
In 2016, from the advantages brought by FTAs, enterprises in Binh Duong province are having high hopes for expanding export market. Photo: Manufacturing activities of Vietnam Sakata Inx Company (Vietnam – Singapore Industrial Park)
Binh Duong province enterprises expect a drastic change
FTA signing opportunity of Vietnam has attracted importers from countries to shift their orders to Vietnam. Among main exported products of the country, textiles are growing spectacularly.
In 2016, development prospects of the footwear industry are quite favorable, because most major export markets of this industry are members of FTAs with Vietnam partnership. Many companies in Binh Duong have now signed contracts for goods until the end of the first quarter of 2016.
According to Dieu Chi Hao, Director of Tuong Long Textile Company (Di An town), in 2016, due to opportunities from FTAs, the company will have more motivations to expand production and market, increase productivity.
With those opportunities, in 2016, businesses in Binh Duong are expecting a vigorous growth.
|
Commenting on benefits brought by FTAs to Vietnam, Tran Quoc Khanh - Deputy Minister of Industry and Trade - said that the first benefit would be new opportunities for export development, due to the abolition of tariff barriers. In addition, TPP will open a possibility for Vietnam to become a part of a newly formed supply chain, facilitating the participation in the global market rather than finding new markets on our own.
In export-import relations, we should avoid excessive dependence on a certain market. However, currently, 70% imports of Vietnam are from East Asia, and 50% exports are to this region. Therefore, this would be a disadvantage in case of arising instabilities, while export is the driving force of GDP growth. Thus, Vietnam needs trade agreements to rebalance the market…
|
Reported by Phuong Le - Translated by Ngoc Huynh